watchdog

Thursday, November 30, 2006

November 30, 2006

DO SHELBY COUNTY TAXPAYERS WANT TO TAKE BACK THE POWER FROM POLITICIANS?

Recently watchdog talked with Ben Cunningham about his spectacular success in Davidson County. If you are not aware of what he has accomplished, he successfully got a petition signed with the requisite number of registered voter signatures (15%) and got a referendum on the ballot. The referendum said the following.

“DAVIDSON COUNTY REAL PROPERTY TAX RATES CANNOT BE INCREASED WITHOUT THE APPROVAL OF VOTERS IN A REFERENDUM”

Click here to go to tntaxrevolt website

It passed with 77% of the vote. His explanation of the success of this movement was that the voters were sick and tired of politicians and their hypocrisy and that the only way to get them to control spending was to put a control on their ability to raise property taxes, their main source of tax money.

We have an even worse situation here in Memphis and Shelby County. In Memphis there is a legal question if such a referendum would be legal and we are checking on this and hope to have an answer soon. But there is no question that Shelby County taxpayers can call for such a question under the County Charter. It would not be easy. The petition would require about 100,000 signatures of registered voters and that is a lot. The local establishment and politicians would fight it tooth and nail. But the county’s debt is over 2 billion dollars and climbing and they are regularly borrowing just to pay the interest. The property taxes in Fayette County from 1997 to 2006 has gone down 21%, in Tipton County they have gone down 14%. In Shelby County they have gone up 29%. It is obvious that taxpayers are leaving Shelby County and going to Tipton, Fayette and Desoto counties.

Let me know if you are interested in helping out in this effort. It must be a grassroots effort with thousands involved if it is to succeed. Give me your thoughts and if you are willing to help, write a response on this blog.

Monday, November 27, 2006

November 27, 2006

There is an interesting article today in the sports section of the Commercial Appeal. Click below to read this article.

Click to read the latest on the Grizzlies

The stupid one sided contract signed by Mayor Herenton and Mayor Rout and approved by the City Council and the County Commission is coming home to roost. Michael Heisley completely pulled the wool over their eyes and now we see the truth of the matter. Heisley is trying to unload this loser on someone, preferabley the 30% owners but anyone will due. If the ticket sales lag (shortfall) then the taxpayers have to pick up the slack. And remember that these are full faith and credit bonds backed up by the taxing powers of the City and County except for property taxes. But you can be assured that if they have to raise property taxes to pay off this debt, the politicians will tell you that it is not because of the Arena finances. Don't believe it.

Brian Davis and Christian Laettner have got it right. The salaries are too high all over the league and that is why Heisley and many other owners looked for and found SUCKER cities like Memphis and sold them a bill of goods that PRO teams are good for the local economy. The only way for them to sustain these over the top salaries is to get a City like Memphis (and many other cities) to finance arenas, give away naming rights and turn over all revenues sources to the team management. Lowering salaries for one teams is not going to work until all teams come to the same conclusion. Click below to read parts of the stupid operating agreement that Memphis and Shelby County politicians signed to bring us to this result.

Click here to see the section 7(b) of the operating agreement which holds the Grizzlies to clean up and run the Arena but leaving all the real costs to the taxpayers.

Click here to see what the taxpayers got hooked for in the operating agreement negotiated by Herenton and Rout.

Click here to see the section that prevents us from having events in the Pyramid and the Coliseum and assures the Grizzlies of all the plums and leaves the pits to the taxpayers.

Click here to see the early termination section.

Wednesday, November 22, 2006

November 22, 2006

WHEN YOU LIE DOWN WITH DOGS, YOU ARE GOING TO GET FLEAS!!!

YOU ARE KNOWN BY THE COMPANY YOU KEEP!!!

Do you remember those two maxims that your mother and father told you when you were young. Well apparently the City Administration did not learn that lesson. Memphis is doing a major amount of business with two firms that have major legal and ethical problems. One is ACS (Affiliated Computer Services) which handles the IT services for the City and many other services that the City does not want to be subject to open bids.

The other is the Linebarger law firm that has the contract to collect delinquent taxes. Read about these two firms in the article linked below.

Click here to read about Linebarger

Click here to read about Linebarger

Click here to read about ACS

Click here to read about ACS

Monday, November 20, 2006

November 20, 2006

NEW MLGW/CITY OF MEMPHIS HEALTH INSURANCE PLAN

WE ARE ASKING FOR YOUR PERSONAL INPUT, THOUGHTS AND INFORMATION SO WE CAN GET THE LATEST REAL FACTS ON THIS MATTER.

Watchdog has received the latest update on the new health insurance plan being proposed by the City and MLGW. Is this a real savings or is it another attempt by the City to unload some of their costs on the MLGW as was the original proposal to combine four City/MLGW departments?

Watchdog is all for hard bargaining with suppliers and for getting real savings without giving up much in the way of benefits and without unfairly putting a burden on those least able to bear new costs, the retirees. $6.7 million in savings would be a real plus but you have to wonder when you consider the past history of the City such as the Linebarger contract which cost the taxpayers $5 million over and above what Bob Patterson would have charged. Watchdog agrees with the points listed below, particularly with the transparency provisions and the independent audit provisions. We hope that the City’s new interest in savings will spill over into laying off some if not all of the illegally appointed employees and to other obvious savings that watchdog has listed in the past. Here are the facts as we know them.

After Marvin Winston, an MLGFW retiree leader, asked for the status of the medical provider contract, Mr. Ward was allowed by the Board to give an update. He advised that a contract has not been signed but this is where we stand with regard to the 7 “musts” outlined at the last meeting.


• 3-year contract - United Healthcare has agreed to this point.
• No change to MLGW medical plan - United Healthcare has agreed to this point.
• Guarantee of $6.7 million savings in the 1st year -This is still being discussed. United Healthcare has now introduced an inflator of 6.5% that would decrease
the savings up to $1 million. We are set on the $6.7 million savings.
• Guarantee relationship with Health Choice –Attorneys are haggling about best way to handle this point.
• Liberty to audit - Not quite sure what this means - still within our grasp.
• Claims management - payment within 2 weeks – United Healthcare has agreed to this point.
• Up front disclosure - Attorneys are still discussing. MLGW wants anyone involved to be disclosed.

Mr. Ward advised the Board that during the added time that we have allowed United Healthcare to drag out negotiations, we have lost close to $500,000 since we are not being allowed to take the advantage of lower reimbursements for services from doctors and hospitals. Open enrollment needs to take place within
the next 2 weeks.

Will keep you posted as more information is available.

Thursday, November 16, 2006

November 16, 2006

ANTI-NEPOTISM POLICY AT MLGW DISCARDED

The anti-nepotism policy which had been in place from 1983 until recently was discarded at the MLGW. The City did not have such a policy and you can judge for your self the results. Now the same policy of hiring relatives has been put in place at the MLGW, no doubt at the insistence of the Mayor. Click below to read the old and the new policy documents and to read the effects of giving contracts to relatives.


MLGW new and old nepotism policy

Click here to see what happens when you give contract to relatives in City government programs

Sunday, November 12, 2006

November 13, 2006

WHAT IS THE COST OF MINORITY PURCHASING POLICIES IN MEMPHIS AND SHELBY COUNTY?

Watchdog has been trying to get this information for a long time and so far has only gotten bits and pieces of the picture. Just last week I got an answer to an open records request at the MLGW. I want to describe the picture of what it takes to get information from the MLGW.

Since they raised the copy price from 25 cents to 50 cents I am forced to take my own copy machine to the site. I am met by a very lovely young lady who is very polite and courteous and am taken to a nearby office and presented with a huge stack of documents. Then a very nice male executive shows up and keeps company with me for several hours while I make copies on my somewhat tired and slow copy machine. I am glad for the company and we discuss politics, world problems and other issues and it helps pass the time and also keeps me from stealing the MLGW paper clips. Then I finally finish and head for home. The thought does pass my mind that all the information on these copies could have been sent by email, but NO that would be too easy and modern. Let’s stick to the old ways, bring on the turkey quills and ink pot.

Here is the information that I found. On P. O. # 122510 dated 7/12/04 Thomas Consultants Inc were given a job for $1,420,812.00 for computers over a bid of $1,358,037.00 from Dell. This is a $62,655.00 difference. Thomas promised a firm price for 1 year and a 5% increase in the 2nd year and a 5% increase in the 3rd year. Dell quoted no increase for the 2nd and 3rd years. Since the computers were to be purchased over several years, this was a significant difference. Also Thomas Consultants has received purchase orders in 2006 in the amount of $993,013.10.

The board of the MLGW stated that the contract was to be given to Thomas Consultants, Inc based on specifications and the intent of the MLGW Supplier Diversity Policy.

There was another huge contract for 1500 mini-tower personal computers and 225 high end laptop computers. Dell’s bid was $2,398,005 and Thomas bid $2,556,335, a difference of $158,330. The contract was originally given to Trinity Technologies, Inc in 2004 but eventually on February 2, 2006 it was given to Thomas Technologies in the amount of $1,972,572. This is to be at the Dell price plus 5% and given to Thomas.

See the documents below showing these facts.

MLGW contracts and board minutes for Thomas Consultants contracts

It is further noted that MLGW, the City of Memphis and Shelby County government can buy computers direct off the State of Tennessee contract with Dell and recently Shelby County put out a bid proposal for Dell Computers (SBI001230) and watchdog followed it closely with an open records request to see who ended up with the bid. I was finally told that the proposal was pulled and they were going to buy the computers off the state contract. More on this later. The state contract can be seen below.

State of Tennessee contract for Dell computers

These are the facts. You decide if your tax money is being spent wisely.

Thursday, November 09, 2006

November 9, 2006

PROPERTY TAX CONTROL MEASURE WINS IN METRO NASHVILLE

For some time watchdog has been in contact with Ben Cunningham who runs a website called tntaxrevolt.com. In the past he has been responsible for keeping payroll taxes from getting approved. Now he has hit the jackpot. He organized a petition drive and got a referendum on the ballot to require the approval of the voters before any property tax increases can be passed by the elected officials of Davidson County (Nashville).

Click below to read the article from the Nashville Tennessean newspaper about this property tax restriction issue.
tennessean article

Click below to see the petition that was successfully signed by the taxpayers.

tntaxrevolt

The same thing could be done in Shelby County similar to what was done for term limits for Shelby County.

Saturday, November 04, 2006

November 6, 2006

The Med has been much in the news lately concerning the possibility of losing some grants from various government sources due to some internal problems. But before all of this came out, watchdog asked for some information about the Med since public money is involved in the funding. Frankly I did not know much about the Med (Shelby County Healthcare Corporation, a component unit of Shelby County, Tennessee, d/b/a the Regional Medical Center of Memphis [The Med]).

Upon receipt of my open records letter I was given a courteous call and invited to take a tour of the Med which I accepted. I was very impressed. The first question I asked was “What is he Med’s purpose and mission?” The answer I think is well stated in the following statement from their financial statement.

The Med is a primary “safety net” healthcare provider for Shelby County and the broader West Tennessee/East Arkansas/North Mississippi triangle, and accepts all patients without regard to ability to pay. As such, The Med is also dependent on certain enhanced reimbursement programs (see note 11) and governmental appropriations to support its mission of full community access to healthcare services. In that respect, The Med has recognized a total of approximately $59,400,000 and $61,500,000 in operating non operating revenues specifically related to such programs and appropriations in fiscal 2005 and 2004 respectively. Any material reduction in these funds (regardless of the source program) would have a correspondingly material adverse effect on The Med’s financial position and operating results.

My tour was very impressive. The place was clean, cheerful and apparently well staffed with qualified people. The management was open and receptive to questions and ideas. I was struck by the fact that the $25 million that the Med receives from the Shelby County government has been stuck around that figure for years and years with no increase regardless of inflation. The job that they do is critical for the poor and uninsured and the reputation that they have for trauma treatment, burn treatment and other specialty services is first class with a national reputation.

I am posting their financial statement for 2005 and when 2006 is available, I will post that also. Also in future posting, I will post certain other information about the management including salaries and benefits which the tax paying public is entitled to know.

The Med financial statement for 2005

Wednesday, November 01, 2006

November 1, 2006

LOTS OF INTERESTING STUFF GOING ON IN TENNESSEE

There was an interesting editorial in the CA this morning. It had to do with open records laws for which the CA has been a leader in calling for tougher enforcement and penalties for refusal to open records. Naturally Tennessee City and County governments have opposed any tougher laws or enforcement. Here is what the CA said in part.
“But it doesn't explain why only 32 of more than 180 legislative candidates responded to a survey distributed by the Tennessee Coalition for Open Government, designed to assist a committee that is evaluating the state's open meetings and open records laws.
Coalition director Frank Gibson told The Associated Press the response rate led him to wonder if candidates "might be concerned about getting in the middle of a fight between the press and local government."
Because of penalties being proposed for violating open government laws in Tennessee and other factors, local governments have objected to putting more teeth into laws that attempt to give the public more access to the government it pays for.
By February, the legislature hopes to have a set of committee findings that will help set a new course for open government.
That doesn't seem likely given the committee's late start -- delayed by the failure of Speaker of the House Jimmy Naifeh and Lt. Gov. John Wilder to make any appointments to the committee until October.
All of which may be due to the information turned up by a recent Mason-Dixon poll: Only 56 percent of Tennesseans think too much government business is secretive.
The fact is that the open meetings and records laws on the books in Tennessee are not being enforced vigorously and there are few drawbacks to ignoring them. “
Candidates for the legislature apparently would rather not hear about any of this, and most would rather not tell anyone what they think.”
Another interesting thing is on the ballot in Davidson County (Nashville) and that is a proposal to only allow increases in property taxes after approval in a referendum by the voters. Again the politicians and the election commission managed to confuse the issue as the article and video clips shown below report. Click below and follow the story which is fascinating. Ben Cunningham of the website http://tntaxrevolt.com is to be congratulated for his efforts in support of open government and fiscal responsibility.

video about property tax vote

article in tennessean newspaper